Due Diligence

Your due diligence is probably wrong

Global Advisors: a consulting leader in defining quantified strategy, decreasing uncertainty, improving decisions, achieving measureable results.

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Our latest perspective - What's behind under-performing listed companies?

Outperform through the downturn

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We are hiring experienced top-tier strategy consultants

Quantified Strategy

Decreased uncertainty, improved decisions

Global Advisors is a leader in defining quantified strategies, decreasing uncertainty, improving decisions and achieving measureable results.

We specialise in providing highly-analytical data-driven recommendations in the face of significant uncertainty.

We utilise advanced predictive analytics to build robust strategies and enable our clients to make calculated decisions.

We support implementation of adaptive capability and capacity.

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Strategy Tools

PODCAST: A strategic take on cost-volume-profit analysis

PODCAST: A strategic take on cost-volume-profit analysis

Our Spotify podcast highlights that despite familiarity, most managers do not apply CVP analysis and get it wrong in its most basic form.

The hosts explain cost-volume-profit (CVP) analysis, a crucial business tool often misapplied. It details the theoretical underpinnings of CVP, using graphs to illustrate relationships between price, volume, and profit. The hosts highlight common errors in CVP application, such as neglecting volume changes after price increases, leading to the “margin-price-volume death spiral.” The hosts offer practical advice and strategic questions to improve CVP analysis and decision-making, emphasizing the need for accurate costing and a nuanced understanding of market dynamics. Finally, the podcast provides case studies illustrating both successful and unsuccessful CVP implementations.

Read more from the original article.

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Fast Facts

Fast Fact: Some of your business segments are destroying value – which?

Fast Fact: Some of your business segments are destroying value – which?

By Stuart Graham

Key insights

We often see uncertainty in our clients about whether to focus on RONA or growth. While both are obviously important, which will create the greatest value for their companies and shareholders?

We introduced the market-cap curve to help answer this question by plotting the well-known valuation equation for combinations of RONA and growth at a constant valuation.

RONA / growth combinations along the curve preserve the company valuation. Combinations above the curve increase the valuation and combinations below the curve decrease the valuation.

It is easy to see from the graph that companies with high RONA and low growth will benefit more from growth improvements while companies with low RONA and high growth will benefit more from RONA improvements.

The market capitalisation curve provides a useful boundary for capital allocation when business segment performance are plotted against the curve.

ANY performance improvement of ANY business unit raises the aggregate performance and therefore moves the curve outwards – i.e. increases company value.

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Selected News

Quote: Andrew Johnson

Quote: Andrew Johnson

“The men of our race in every age have struggled to tie up the hands of their Governments and keep them within the law; because their own experience of all mankind taught them that rulers could not be relied on to concede those rights which they were not legally bound to respect.” – Andrew Johnson. US President

— Veto of the First Military Reconstruction Act , March 2 1867

The quote reflects his views on the relationship between government authority and individual rights, particularly in the context of post-Civil War America. Johnson, who served as the 17th President of the United States (1865-1869), assumed office after the assassination of Abraham Lincoln and faced the monumental task of reconstructing the nation following the Civil War.

In this statement, Johnson emphasizes the historical struggle of people to limit governmental power and ensure that rulers adhere to the law. He suggests that throughout history, individuals have sought to “tie up the hands of their Governments” to prevent abuses of power and protect their rights. This perspective is rooted in a fundamental belief in the rule of law and the idea that governments must be held accountable to the rights of the governed.

Johnson’s assertion that “rulers could not be relied on to concede those rights which they were not legally bound to respect” highlights a skepticism toward government authority. He implies that without legal constraints, those in power are unlikely to voluntarily respect the rights of individuals. This reflects a broader philosophical view that emphasizes the necessity of legal frameworks to safeguard civil liberties and prevent tyranny.

The context of Johnson’s veto is significant. The First Military Reconstruction Act was part of a series of measures aimed at rebuilding the South and ensuring civil rights for newly freed African Americans. Johnson’s opposition to the act stemmed from his belief in a more lenient approach to Reconstruction, which favored the rights of Southern states over federal intervention. His veto was indicative of his contentious relationship with Congress, particularly with the Radical Republicans who sought to enforce stricter measures for Reconstruction.

Johnson’s quote can be interpreted as a defense of limited government and a warning against the potential for governmental overreach. However, it also reflects his political stance during a critical period in American history, where the struggle for civil rights and the integration of formerly enslaved individuals into society were at the forefront of national discourse.

Overall, this quote serves as a reminder of the ongoing tension between individual rights and governmental authority, a theme that remains relevant in contemporary discussions about civil liberties, the rule of law, and the responsibilities of government to its citizens. Johnson’s emphasis on the need for legal constraints on power resonates with the foundational principles of democracy and the importance of protecting the rights of all individuals against potential abuses by those in authority.

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Polls

How self-aware are you – poll results

Thank you for participating in our self awareness poll.

Our results closely match the results detailed in Tasha Eurich’s book, “Insight,” where 95% of people rate themselves self-aware but just 10 to 15% are.

See the full results here.

While visitors to the Global Advisors’ website might be more self-aware than the general population, 70% rated themselves that way!

Now read So You Think You’re Self Aware?

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Services

Global Advisors is different

We help clients to measurably improve strategic decision-making and the results they achieve through defining clearly prioritised choices, reducing uncertainty, winning hearts and minds and partnering to deliver.

Our difference is embodied in our team. Our values define us.

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Define optimal business portfolios aligned with investor expectations

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Define how to win against competitors

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Understand your business’ core, reach full potential and grow into optimal adjacencies

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M&A, due diligence, deal structuring, balance sheet optimisation

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14 years of quantitative and data science experience

An enabler to delivering quantified strategy and accelerated implementation

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Leading-edge data science and digital skills

Experts in large data processing, analytics and data visualisation

Developers of digital proof-of-concepts

An accelerator for Global Advisors and our clients

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We hire and grow amazing people

Consultants join our firm based on a fit with our values, culture and vision. They believe in and are excited by our differentiated approach. They realise that working on our clients’ most important projects is a privilege. While the problems we solve are strategic to clients, consultants recognise that solutions primarily require hard work – rigorous and thorough analysis, partnering with client team members to overcome political and emotional obstacles, and a large investment in knowledge development and self-growth.

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